Wentworth uses the Federal Direct Loan program. This means that all Subsidized and Unsubsidized Stafford loans, Parent PLUS loans, and Graduate PLUS loans will be processed through the Department of Education.

Subsidized and Unsubsidized Stafford Direct Loans

The Direct Loans for which you are eligible will be offered to you on your financial aid award package. These loans are borrowed under your name through the Direct Loan program.

Eligibility

You must be submit a FAFSA and be enrolled at least half-time (six credits per semester for undergraduates) to be eligible for these loans. For the Subsidized loan, you must demonstrate financial need as determined by the FAFSA.

If a student drops below half-time enrollment, his loans will go into the grace period and then repayment. Should the student return to half-time or greater enrollment, his loans will go back into deferment. Should a student use his grace period prior to graduation, it may no longer be available and upon graduation, and the student will directly into repayment.

Subsidized vs. Unsubsidized

Subsidized loans are need-based loans. Interest on these loans does not accrue while you are in school and during the 6-month grace period after you leave school. Unsubsidized loans will begin accruing interest as soon as they are disbursed to you.

Amounts

1st-year students: $3500 subsidized + $2000 unsubsidized

2nd-year students: $4500 subsidized + $2000 unsubsidized

3rd & 4th-year students: $5500 subsidized + $2000 unsubsidized

Independent students, and any dependent student whose parent was denied a Parent PLUS loan, are eligible for additional unsubsidized loans:

1st & 2nd-year students: $4000 additional unsubsidized

3rd & 4th-year students: $5000 additional unsubsidized

Loan proration for graduating borrowers (undergraduates only)

If you are a graduating senior and are attending less than three semesters (less than two semesters if you are a 5th year BELM student), your Stafford loans may be prorated based on the number of credits for which you are enrolled. This means that you may not be eligible to receive your maximum annual loan limit.

The Department of Education requires schools to pro-rate your Stafford loans if you will be graduating from the school in less than an academic year. Please go to our website for more detailed information at http://www.wit.edu/ssc/financial/loans.html.

Loan proration applies only to undergraduate students; it does not apply to graduate or professional students.

Examples for Students Enrolled Full-Time For One Semester:

Example of dependent student proration calculation:

12 credits enrolled in each semester

31 academic year credits

12 / 31

x 5500 subsidized loan

= $2129

12 credits enrolled in each semester

31 academic year credits

12 / 31

x 2000 unsubsidized loan

= $774

Example of independent student proration calculation:

12 credits enrolled in each semester

31 academic year credits

12 / 31

x 5500 subsidized loan

= $2019

12 credits enrolled in each semester

31 academic year credits

12 / 31

x 7000 unsubsidized loan

= $2710

Examples for Students Enrolled Full-Time For Two Semesters

Example of dependent student proration calculation:

24 credits total (12 credits enrolled in each semester)

31 academic year credits

24 / 31

x 5500 subsidized loan

= $4258

24 credits total (12 credits enrolled in each semester)

31 academic year credits

24 / 31

x 2000 unsubsidized loan

= $774

Example of independent student proration calculation:

24 credits total (12 credits enrolled in each semester)

31 academic year credits

24 / 31

x 5500 subsidized loan

= $4258

24 credits total (12 credits enrolled in each semester)

31 academic year credits

24 / 31

x 7000 unsubsidized loan

= $5419

Interest Rates

Direct loan interest rates are fixed rates – they will remain the same for the life of the loan.

For 2013-2014 (First disbursement on or after July 1, 2013):

Subsidized: 3.86%*

Unsubsidized: 3.86%

For 2012-2013 (First disbursement on or after July 1, 2012):

Subsidized: 3.4%*

Unsubsidized: 6.8%

For 2011-2012 (First disbursement on or after July 1, 2011):

Subsidized: 3.4%*

Unsubsidized: 6.8%

For 2010-2011 (First disbursement on or after July 1, 2010):

Subsidized: 4.5%*

Unsubsidized: 6.8%

For 2009-2010 (First disbursement on or after July 1, 2009):

Subsidized: 5.6%*

Unsubsidized: 6.8%

*These rates apply to undergraduate students only. Graduate students are only eligible for the Unsubsidized loan rate of 6.8%.

Fees

Origination Fee: 1.072% for loans originating on or after December 1, 2013. 1.051% for loan originated for the 2013-14 academic year prior to December 1, 2013. (This fee goes to the government to help reduce the overall cost of the loans.)

This amount will be subtracted from each loan disbursement.

Repayment & Consolidation

To finance your college education, you may find it necessary to borrow from more than one loan source or lender, resulting in the financial burden of multiple monthly payments. After you graduate or are no longer enrolled at least half-time, you may want to consider consolidating your loans--a process by which an approved agency pays off your existing loans and creates one new loan. In some cases, loan consolidation can be a practical student debt management tool. However, consolidation is not the best option for everyone. Keep in mind that you may lose deferment privileges and pay back more in interest over time.

Loan Consolidation Basics
Federal and private consolidation loans allow you to reduce your monthly student loan payments by extending your repayment terms and may allow you to obtain a better, fixed interest rate. When you consolidate, your consolidation loan lender pays the outstanding balances on the loans you consolidate. In essence, you refinance your education debts.

Federal Student Loans:
Consolidation is available to most borrowers of federally funded educational loans including:

Alternative lenders may require you to be in active repayment before you can apply.

Ask private lenders about possible consolidation loan fees or other costs before you apply.

Most lenders do not consolidate federal loans together with private loans.

To determine the interest rate, loan consolidation agencies weight the average of all the loans included in the consolidation, rounded up to the nearest 1/8 of a percent. Typically, borrowers may prepay all or part of consolidation loans at any time without penalty.

Advantages and Disadvantages of Loan Consolidation

Advantages:

Offers a fixed interest rate.

Reduces monthly payment by extending the loan term.

May result in fewer bills to handle.

May offer various repayment options available including:

Standard Repayment--you pay a fixed amount each month until your loan is paid in full.

Extended Repayment--allows you to extend loan repayment over a period of ten to thirty years, depending on your loan amount.

Graduated Repayment--allows you to make smaller payments at first, and larger payments later. This is a good strategy for students who cannot make large payments immediately after graduation. Payments start low and increase every few years.

Income Contingent Repayment--your monthly payment is based on your yearly income, family size, and loan amount. Your payments rise and fall with your income. After 25 years, any remaining balance on the loan is forgiven, however you may have to pay taxes on the amount forgiven. Payments can never exceed 20% of your discretionary income.

Most consolidation loan programs do not have prepayment penalties. Prepayment on your loan will reduce your overall interest costs by paying the loan off early.

Disadvantages:

You may lose deferment options.

You will pay more interest over time due to the extended repayment period (unless you are able to prepay or make additional payments on your loan).

You may lose payback benefits from current lenders (i.e., interest rate reductions for submitting on-time payments).

At this time, the most stable consolidation option for federal student loans is through the Federal Direct Loan Program. You may also want to contact your lender or servicer to discuss other repayment options. If you do not know your lender(s), access your federal loan information through the National Student Loan Data System (NSLDS).

Private Alternative Student Loans:
The following are lenders who currently offer alternative consolidation loans. You may also want to contact your private alternative lender, if not listed, to find out if they also offer a consolidation loan. Carefully review the terms and conditions associated with each loan program before you apply. Keep in mind that most lenders do not consolidate private loans together with federal loans.

Parent and Graduate Direct PLUS Loans

Parent and Graduate Direct PLUS loans are federal loans available to help fill the gap between your expenses (Cost of Attendance) and your financial aid package. These are available to parents of dependent students and students pursuing a graduate degree.

Eligibility

To be eligible, you must file a FAFSA and must not have an adverse credit history.

Interest Rate

Direct PLUS loans have a fixed annual interest rate of 7.9%.

Fees

Origination Fee: 4.204% (This fee goes to the government to help reduce the overall cost of the loans.)

Repayment & Consolidation

Your Graduate Direct PLUS loan will enter repayment on the date of the last disbursement, however, your loan will be deferred as long as you are enrolled at least half-time in your degree-seeking program. During this time, your loan will accrue interest and you can opt to make interest-only payments.

Your Parent Direct PLUS loan has an optional grace period of either:

60 days after the loan is fully disbursed, or 6 months after your student is not enrolled at least half-time

During this time your loan will accrue interest and you can opt to make interest-only payments.

Perkins Loan

If you are offered this loan it will appear on your financial aid package. In the past we have offered the Wentworth Loan in place of the Perkins Loan.

Eligibility

Funding for this program is limited and will be offered to undergraduate students who submit a FAFSA and have high financial need. You must be enrolled full-time.

Amount

$3000 maximum award

Interest Rate

5.0% fixed annual interest rate. This loan is subsidized, meaning that you will not be charged interest until you enter repayment. There is no origination fee.

Repayment

After you are no longer enrolled at least half-time in a degree-seeking program, you will have a 9-month grace period before repayment begins.

Promissory Note & Disclosures

If you are offered and accept a Perkins Loan, you will be contacted by University Accounting Services to sign a Promissory Note and other paperwork.

Massachusetts No Interest Loan

The Massachusetts No Interest Loan is offered to eligible students on a funds-available basis.

Eligibility

Funding for this program is limited. To be eligible, a student must be eligible for need-based federal aid (have a valid FAFSA on file and demonstrate financial need as determined by the FAFSA,) and be a permanent legal resident of Massachusetts for one year prior to the start of the academic year for which the loan is awarded.

Amount

Awards range from $1000 to $4000 per academic year. Award amounts are determined according to financial need.

Interest and Fees

This loan has no interest or fees.

Alternative Loans

These are education loans from private lenders. They vary in eligibility requirements, fees, interest rates, repayment, etc., depending on the lender, so be sure to choose carefully. Depending on the loan product, the loan can be in either the student's or parent's name.

In general, we recommend that you exhaust your federal loan eligibility (including PLUS loans) before borrowing alternative loans. The list below is not exhaustive, but includes lenders our students have used in the last three years.